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Power Marketing Administrations: Repayment of Power Costs Needs Closer Monitoring

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Report Type Reports and Testimonies
Report Date June 30, 1998
Report No. AIMD-98-164
Subject
Summary:

This report examines the monitoring of the repayment of the power-related costs and debt of four of the Energy Department's (DOE) power marketing administrations (PMA). The PMA's costs and the power-related costs of the agencies that generate the power marketed by the PMAs are required by law to be repaid. Repayment is to be made through revenues from federal power sales. Members of Congress have raised concern about, and GAO has previously reported on, the under-recovery of power-related costs and the large amount of debt outstanding--more than $14 billion as of September 1997. This report determines (1) whether DOE or the Treasury Department actively monitors the amount of debt to be repaid and the appropriateness of the annual payments and (2) whether there is a potential for financial loss to the federal government because of the lack of repayment monitoring.

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